The EU Commission announced that American travellers will need a new type of “travel authorisation” – a European Travel Information and Authorization System or ETIAS – to visit the European Schengen Area beginning in 2021. Currently, US citizens can travel in Europe for up to 90 days with a valid passport without any visa requirements.

The new travel document will be valid for three years allowing for multiple entries into the Schengen Area. With ETIAS, travellers will need a passport, complete an online application and pay a fee of US$7. In most cases, approval should take only a few minutes.

News reports first called the process a “visa”, but authorities have been quick to clarify the semantics. Officials state that ETIAS is simply a “travel authorisation” for visa-free visitors, similar to the US system (Electronic System for Travel Authorization – ESTA) to screen people in the Visa Waiver Program (VWP).

Americans with financial accounts outside the United States should be careful to report it. Foreign financial accounts are high on the I.R.S. scrutiny list. Failure to disclose foreign accounts can be penalized severely. This includes people who inherited assets overseas as well as those who lived and worked abroad.

FinCEN Form 114, the Report of Foreign Bank and Financial Accounts is used for holdings of $10,000 or more and is filed electronically with the Treasury. Form 8938, which attachs to Form 1040, is used in more complex situations with $50,000 or more.